What is ontology and why it produces weapons-grade AI for Palantir

AiM TLDR

Palantir Technologies joined the S&P 500 Index today. Back in June, CEO Alex Karp discussed the company's AI platform AIP, which uses "ontology" to refine large language models (LLMs) and make them valuable for enterprise applications. He claims AIP creates transformative value for businesses by improving efficiency, accuracy, and resource allocation, with examples from construction, healthcare, and the military.

Karp described ontology as a crucial component of Palantir's approach to making large language models (LLMs) useful for enterprises. He explained that ontology is the framework that allows businesses to effectively leverage LLMs within their specific operational contexts.

Key points about ontology:

1. It imposes the logic of a business on the large language model, including the security and intellectual property considerations specific to that enterprise.
2. Ontology allows for the refinement of LLMs, which Karp likens to a "raw resource" or "emergent property," into something that can be practically used within a business context.
3. It enables the transformation of non-technical people into technical people by providing a structured way to interact with AI models.
4. Karp suggests that ontology, along with chips, is one of the two parts of the AI market that are creating real value.
5. He claims that Palantir's ontology approach allows businesses to use AI to transform their enterprises, change margins, and improve efficiency in ways that were previously not possible or prohibitively expensive.
6. In the context of defense, Karp mentions that the combination of large language models and ontology can be wielded as a "very deadly weapon," creating efficiencies for smaller armies against larger ones.

Karp argues that AI, specifically the combination of LLMs and ontology, is crucial for American competitiveness and national security, emphasizing the need for the U.S. to develop powerful software-driven weapon systems. He also highlights the growing importance of this technology for businesses and the U.S. government.

Overall, Karp positions Palantir's ontology as the key to unlocking practical, valuable applications of AI in both commercial and defense sectors, bridging the gap between the potential of LLMs and their actual implementation in real-world scenarios.